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how does bankruptcy affect a property title this is dave at titlesearch.com if a property owner or some other claimant to real estate files bankruptcy and that bankruptcy goes through that asset the ownership of that property will be listed as the assets in the bankruptcy however if there is a mortgage on that property could complicate things the mortgage holder could be a secured creditor rather than unsecured creditor and the bankruptcy trustee may have to deal with that in a different way get good legal advice about your specific situation but in general that property or at least the part thats encumbered by that mortgage or the lien will go to that creditor and any equity or leftover will become part of the property of state now if that happens its very important for a potential buyer or an investor to understand what those bankruptcy claims will affect the property owners rights if you buy a property out of bankruptcy have questions about doing a search to see what liens or ban
